On the rocks? Scotch distilleries pause production as unsold ‘whisky loch’ grows

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With whisky production paused at Holyrood Distillery in Edinburgh, the copper fermentation stills sit idle. Photograph: Holyrood Distillery View image in fullscreen With whisky production paused at Holyrood Distillery in Edinburgh, the copper fermentation stills sit idle. Photograph: Holyrood Distillery Whisky On the rocks? Scotch distilleries pause production as unsold ‘whisky loch’ grows Demand for Scotland’s most famous export has slumped, with industry facing job cuts and closures

Patrick Greenfield Tue 29 Sep 2026 10.01 BST Share Prefer the Guardian on Google O bscured by the Scottish countryside on the outskirts of Kirkcaldy, Cluny bond is, in effect, a small town built to store whisky. By the time the latest set of warehouses are finished on the former opencast coal mine, Diageo’s 220-hectare (544-acre) maturation campus will be able to store almost 3m casks of Scotch. The drinks multinational needs the space.

After a 15-year boom turbocharged by the Covid-19 pandemic, demand for Scotch whisky has slumped around the world. Distilleries have paused production across Scotland to avoid adding to the glut of supply, known as a “whisky loch” – the equivalent of a “wine lake”.

Last week, the community-owned GlenWyvis Distillery in the Highlands announced it would appoint administrators following sustained financial pressure in the whisky market. On Monday, workers at Cameronbridge, Diageo’s largest distillery, a short drive from Cluny bond, began strike action in opposition to the company’s plans to cut hundreds of jobs across its Scottish operation.

Diageo produces about one in three bottles of Scotch globally, including popular brands such as Johnnie Walker. Dozens of Scotland’s 156 active distilleries are rumoured to be up for sale.